Mate you could have $100m in REVENUE but if it costs you $100m to generate that revenue, your earnings are zero.
So if it costs the company $390k p/m to generate sales of $400k p/m, then that's only $10k p/m of earnings or $120k p/a. On a PE of 10, that only justifies a MC of $1.2m. Less than half where they are now.
Obviously that's all dependent on what the actual earnings are but I think it's telling they didn't disclose them.
My guess is that the margins are wafer thin, in particular in cloud based telco solutions. Talk about a saturated market. We're no longer talking about commodities guys - they need to add value to this with all of the thie mining experience. No chance.
BTW - 2.2c SP target is utterly ridiculous. Shares on issue will double. I don't think some of you get how this all works.
AWD Price at posting:
0.6¢ Sentiment: Sell Disclosure: Not Held
